Wednesday, December 9, 2009

One of the things that I do each evening is to look at the biggest and best gainers and decliners for the day. You can always pick out continuations or reversals, especially when a stock is up/down double-digits and more especially if a stock breaks out/breaks down on the daily.

The volume on the first day is nearly always the highest. The second day's volume declines vs. the first day, but usually still remains higher than average, giving more than enough liquidity to get in/out of trades with ease. I like to stick with stuff that's about 500k+ in volume.

Then, I check the stocks the next day in the pre-market session for any activity that catches my interest.

CHAT

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